News / Air rate anger from Bangladesh exporters as carriers 'cash in' on logjams

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Airfreight rates from Bangladesh to major western destinations have shot up in a span of two weeks as export cargo piles up at the country’s main airfreight gateway, Dhaka.

Student-led protests in the third week of July prevented some 3,000 tonnes of exports leaving after the government responded to chaos and blocked highways with curfews and an internet shutdown.

As soon as the internet connection was restored, on 24 July, businesses rushed to send export boxes to airports and seaports, intensifying a shortage of space, which in turn saw freight rates spiral.

Now, exporters are claiming carriers were taking advantage of the demand spike, raising rates by as much as $1.50 per kg to a variety of destinations. And airlines are charging $7.50 to carry a kg of cargo to the US, which was costing around $6 in the first week of July. To Europe, they are charging close to $6 per kg from a previous rate of $5.20.

Nasir Ahmed Khan, VP of the Bangladesh Freight Forwarders Association, told The Loadstar: “Ultimately the exporters are the sufferers of the freight rates hike.”

He added that as air freight rates were so much higher at Dhaka than at Kolkata, this “could force many exporters to avoid Dhaka Airport in the future”.

And despite the delays, no airlines have deployed any freighters at Dhaka to help clear the backlog, still relying on passenger planes and their bellyholds, with just 600 to 700 tonnes of cargo being carried exported each day, said Mr Khan.

One exporter commented: “Despite demand rise the airlines wouldn’t deploy freighters, They want to cash in on the situation.”

Meanwhile, this week, Bangladesh received phytosanitary certification to export fresh mangoes to China, a country that spent some $18bn on imported fruit last year.

“[Certification] will provide a huge Chinese consumer market for Bangladeshi high-quality mangoes and help the country achieve its export diversification goals,” said the Chinese embassy in Dhaka.

Bangladesh exported 1,757 tonnes of mangoes in 2022, but saw this rise 73%, to 3,045 tonnes, last year, thanks to sales in ten new markets. Adding China to the list will give this year’s figures another welcome boost.